Trump threatens to double tariffs on Spanish goods amid dispute over NATO military spending

US President Donald Trump has sharply criticized Spain for refusing to support a new defense spending target agreed by NATO countries. During the summit held in The Hague, Trump announced his intention to impose double tariffs on Spanish exports if Madrid continues to deviate from the union agreement.

"You are the only country that doesn't pay. I don't understand what the problem is," Trump said, commenting on the position of the Spanish leadership on the issue of defense financing. He added that in response, the US would "force [Spain] to pay twice as much" under a bilateral trade agreement. These statements caused the Spanish IBEX 35 stock market index to fall by 1.5%. Before the president's speech, the decline was 1.3%.

The European Commission, which is responsible for trade policy on behalf of all 27 EU countries, is continuing negotiations with Washington in an attempt to conclude an agreement before July 9, when increased tariffs — up to 50% — on most of the bloc's exports to the United States will take effect. The EU estimates that the duties already in place affect about 380 billion euros ($439 billion) of shipments, equivalent to about 70% of the region's exports to the United States.

Spanish Economy and Trade Minister Carlos Cuerpo rejected Trump's threats, stressing that Madrid does not conduct trade negotiations directly. "Negotiations with the United States are a pan-European process. All decisions are made by the European Commission, " he said in a comment to the EFE news agency.

Spanish Prime Minister Pedro Sanchez said earlier that the country will increase defense spending to 2.1% of GDP, but refuses the target of 5% proposed as part of the updated NATO initiative. He reiterated Madrid's readiness to meet other obligations, including the supply of weapons and participation in new missions, without taking on the full financial burden.

The Trump administration continues its policy of raising tariffs on a wide range of European products. In addition to the existing 25 percent tariffs on automobiles and 50 percent on steel and aluminum, the White House is considering measures for pharmaceuticals, semiconductors and civil aviation.

In response to earlier restrictions, the European Union has approved mirror duties on goods from the United States worth €21 billion, including soybeans, poultry, motorcycles and products from politically sensitive states, including Louisiana — the home state of House Speaker Mike Johnson. An additional list of tariffs for products worth up to €95 billion has also been prepared, which can be adjusted depending on the position of member countries and industry lobbyists.

Trump, commenting on the situation, said that he intends to personally negotiate with Spain. "I'll arrange it directly myself. They will pay — and they will pay more, " he stressed.